Where will we be in six months, a year, ten years from now? The future is quite uncertain. I am sure you are wondering what will happen to your business, your job, your livelihood. We still don’t know?
There are a number of possible futures. Hopefully, we will use this crisis to rebuild, produce something better and more humane. But we may slide into something worse. All in all, we have to prepare.
These are some measures you can look at and have a glance at some best case practices on what other organizations are doing.
Take Bold Actions
Cut costs wisely
While businesses that are often cash strapped, especially if they are not in operation will start making cuts to reduce costs, doing so can be detrimental in the long term.
Before you make cuts, run that through your financial projections; remember “Every cut that you make is going to cut your ability to generate revenue or keep your business going. However, we need to be frugal.
Best case practices: Avoiding long term contracts- businesses have engaged in a pay as you go type of contract for various services e.g Professional services like accounting, marketing, etc, Reduction of fixed costs like rent- most companies are opting for the working from home models or subletting and sharing office space with other companies, Ensuring collections are done and payment plans with clients, utility contracts suspended like drinking water, internet, cleaning services, Catering
Revisit your business model.
Switching up your business model may be the last thing you want to do when you reopen, but it could be what keeps you in business. Even once all this is over, it may take time for businesses to recover and potential clients will be very difficult partying with a coin, people will be keen on “Value for Value”. As I was doing research on this, it sounds like starting your business all over again from scratch; this is cringe-worthy and painful to any entrepreneur.
It would be good to think through and take time to re-strategize. People would be in search of new ways of doing things. plus it’s good to remain top of mind to clients.
Best case practices: Encouraging customers to reach out and discuss their circumstances and they kind of support they would require and also offering some”Free” Services this can help businesses create products around this, Doing reports in your area of business expertise to clients and potential clients,More focus on digital and online services, delivery services for product based businesses,Some extending “status” through 2022 especially in the tours and travel industry, Offering virtual hangouts with celebrities on online platforms or managing online /virtual events for companies businesses in the ones in the events and entertainment sector,pick up and drop of cars that need services for the automotive businesses, Hairdressers offering free online classes on caring for your hair- do it at home, Restaurants offering packaged ingredients for a make your own pizza etc,online personal training and wellness for gyms,a doorknob company has eliminated the need to use doorknobs by replacing it with a new product -elbow hooks, A furniture company is offering video conference backgrounds—that let you dial in from your dream home, Online competitions for real estate businesses- : If I had a shamba in Thika- I would best idea wins something”Maybe a shamba”, crowd sourcing for ideas on how to re-invent using surveys and competitions on social media.
Recently the norm has been to reduce the number of staff through terminations, redundancies, not extending contracts, and even giving unpaid leave to employees. Working from home has been a challenge to many managers especially getting output from teams.
Best case practices: pay for work done type of contracts, engaging consultants or employees who can work as consultants, outsourcing to avoid additional costs and liabilities like terminal benefits, paid leave, etc, working from home- based on clear deliverables weekly ken follow up is required, financial literacy training so that employees are more savvy and avoids frustrations from staff, Rather than providing unpaid leave or layoffs, some creative Chinese enterprises actively reallocated employees to new and valuable activities, like recovery planning, or even loaned them to other companies.
In conclusion, the future is here, and the best thing is to embrace and have a proper working model around this.
Is this how the future will look like?